RequiredParts (1) and (2), below, are based on different policies regarding hedging. Answer each part as an independent problem.1. L’Anse Ltd. did not hedge or cover its exchange risk position. Prepare the journal entries for 20X3. The company has a December 31 year-end.2. At the time of each transaction, L’Anse Ltd. entered into a forward contract, which was a perfect and complete hedge against the foreign exchange risk. Prepare the journal entries for 20X3. The company has a December 31 year-end.